----

**UNITED      STATES **

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**FORM      10-Q**

| x | Quarterly                Report Pursuant to Section 13 or 15(d) of the Securities Exchange                Act of                1934 |
|---|--------------------------------------------------------------------------------------------------------------------------------------|

| o | Transition                Report Pursuant to Section 13 or 15(d) of the Securities Exchange                Act of                1934 |
|---|---------------------------------------------------------------------------------------------------------------------------------------|

**BRITTON      & KOONTZ CAPITAL CORPORATION**

|   | Mississippi                                                                                 |   | 64-0665423                                             |   |
|--------|---------------------------------------------------------------------------------------------|--------|--------------------------------------------------------|--------|
|   | (State                or Other Jurisdiction ofIncorporation                or Organization) |   | (I.R.S.                Employer Identification Number) |   |

|   | o | Large                accelerated filer |   | o | Accelerated                filer |   | x | Non-accelerated                filer |
|--------|---|----------------------------------------|--------|---|----------------------------------|--------|---|--------------------------------------|

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Table          of Contents

**BRITTON&KOONTZ      CAPITAL CORPORATION**

**AND      SUBSIDIARIES**

**INDEX**

| **PART                I.**  | **FINANCIAL                INFORMATION**                                                                                              |
|-----------------------------|---------------------------------------------------------------------------------------------------------------------------------------|
|                        |                                                                                                                                  |
|                        |                                                                                                                                  |
|                        | **Item                1. Financial Statements**                                                                                       |
|                        |                                                                                                                                  |
|                        | Consolidated                Statements of Financial                Condition                                                          |
|                        | Consolidated                Statements of Income                                                                                      |
|                        | Consolidated                Statements of Changes in Stockholders'                Equity                                              |
|                        | Consolidated                Statements of Cash Flows                                                                                  |
|                        | Notes                to the Consolidated Financial                Statements                                                          |
|                        |                                                                                                                                  |
|                        | **Item                2. Management’s Discussion and Analysis of Financial                Condition and Results of Operations** |
|                        |                                                                                                                                  |
|                        | **Item                3. Quantitative and Qualitative Disclosures About                Market Risk**                                  |
|                        |                                                                                                                                  |
|                        | **Item                4. Controls and                Procedures**                                                                     |
|                        |                                                                                                                                  |
|                        |                                                                                                                                  |
| **PART                II.** | **OTHER                INFORMATION**                                                                                                  |
|                        |                                                                                                                                  |
|                        | **Item                1A. Risk Factors**                                                                                              |
|                        |                                                                                                                                  |
|                        | **Item                2.** **Unregistered Sales of Equity Securities and Use of                Proceeds**                        |
|                        |                                                                                                                                  |
|                        | **Item                6. Exhibits**                                                                                                   |
|                        |                                                                                                                                  |
|                        |                                                                                                                                  |
| **SIGNATURES**              |
|                        |                                                                                                                                  |
|                        |                                                                                                                                  |
| **CERTIFICATIONS**          |

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Table          of Contents

**PART      I**
**FINANCIAL      INFORMATION**

**Item      1.**
**Financial      Statements**

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Table          of Contents

| **BRITTON&KOONTZ                    CAPITAL CORPORATION AND                    SUBSIDIARIES** |   |
|---------------------------------------------------------------------------------------------------|--------|
| **CONSOLIDATED                    STATEMENTS OF FINANCIAL CONDITION**                             |   |
| **FOR                    THE PERIODS ENDED**                                                      |   |
|                                                                                              |   |   |   |   |   |
|                                                                                              |   |   |   |   |   |
|                                                                                              |   |   |   |   |   |
|                                                                                              |   |   |   |   |   |
| **A                    S S  E T S**                                                          |   |
|                                                                                              |   |   |   |   |   |
|                                                                                              |   |   |   |   |   |
|                                                                                              |   | **September                    30,** |   | **December                    31,** |   |
| **ASSETS:**                                                                                       |   | **2006** |   | **2005** |   |
| Cash                    and due from banks:                                                       |   |   |   |   |   |   |   |
|                      Non-interest bearing                                                    |   | $ | 7,406,211 |   | $ | 8,553,139 |   |
|                      Interest bearing                                                        |   |   | 451,828 |   |   | 1,272,320 |   |
| **Total                    cash and due from banks**                                              |   |   | 7,858,039 |   |   | 9,825,459 |   |
|                                                                                              |   |   |   |   |   |   |   |
| Federal                    funds sold                                                             |   |   | 273,779 |   |   | 401,138 |   |
| Investment                    Securities:                                                         |   |   |   |   |   |   |   |
| Held-to-maturity                    (market value, in 2006 and 2005,                              |   |   |   |   |   |   |   |
|                      of $38,500,149 and $39,015,853, respectively)                           |   |   | 37,582,643 |   |   | 37,994,043 |   |
| Available-for-sale                    (amortized cost, in 2006 and 2005,                          |   |   |   |   |   |   |   |
|                      of $68,709,665 and $79,902,610, respectively)                           |   |   | 67,170,716 |   |   | 78,287,012 |   |
| Equity                    securities                                                              |   |   | 4,600,600 |   |   | 5,501,700 |   |
| Loans,                    less unearned income of $249 in 2006 and                                |   |   |   |   |   |   |   |
|                      $794 in 2005, and allowance for loan losses of                          |   |   |   |   |   |   |   |
|                      $2,358,194 in 2006 and $2,377,840 in 2005                               |   |   | 244,778,090 |   |   | 242,534,011 |   |
| Loans                    held for sale                                                            |   |   | - |   |   | 171,200 |   |
| Bank                    premises and equipment, net                                               |   |   | 7,814,040 |   |   | 8,046,668 |   |
| Other                    real estate                                                              |   |   | 1,366,060 |   |   | 1,470,584 |   |
| Accrued                    interest receivable                                                    |   |   | 2,467,238 |   |   | 2,258,225 |   |
| Cash                    surrender value of life insurance                                         |   |   | 964,545 |   |   | 936,378 |   |
| Core                    Deposit, net                                                              |   |   | 800,178 |   |   | 880,890 |   |
| Other                    assets                                                                   |   |   | 1,295,642 |   |   | 952,721 |   |
| **TOTAL                    ASSETS**                                                               |   | $ | 376,971,570 |   | $ | 389,260,029 |   |

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Table          of Contents

| **                                                                                                                              LIABILITIES AND STOCKHOLDERS' EQUITY** |   |                               |        |                              |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------|-------------|-----------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                               |        |                              |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                               |        |                              |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | **September                  30,** |        | **December                  31,** |   |
| **LIABILITIES:**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                               | **2006**    |                              |   | **2005** |   |
| Deposits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                               |        |                              |   |   |   |
| Non-interest                  bearing                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | $                                  | 52,439,506  |                              | $      | 51,466,230 |   |
| Interest                  bearing                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                               | 204,368,559 |                              |   | 205,910,680 |   |
| **Total                  deposits**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                               | 256,808,065 |                              |   | 257,376,910 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                               |        |                              |   |   |   |
| Federal                  Home Loan Bank advances                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                               | 68,943,583  |                              |   | 84,196,067 |   |
| Securities                  sold under repurchase agreements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                               | 9,387,992   |                              |   | 8,032,721 |   |
| Accrued                  interest payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                               | 1,907,250   |                              |   | 1,438,836 |   |
| Advances                  from borrowers for taxes and insurance                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                               | 330,460     |                              |   | 437,222 |   |
| Accrued                  taxes and other liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                               | 1,507,285   |                              |   | 1,363,115 |   |
| Junior                  subordinated debentures                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                               | 5,155,000   |                              |   | 5,155,000 |   |
| **Total                  liabilities**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                               | 344,039,635 |                              |   | 357,999,871 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                               |        |                              |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                               |        |                              |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                               |        |                              |   |   |   |
| **STOCKHOLDERS'                  EQUITY:**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                               |        |                              |   |   |   |
| Common                  stock - $2.50 par value per share;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                               |        |                              |   |   |   |
| 12,000,000                  shares authorized; 2,132,466 and 2,130,816 issued                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                               |        |                              |   |   |   |
| and                  2,117,966 and 2,116,316 outstanding, for September 30, 2006                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                               |        |                              |   |   |   |
| and                  December 31, 2005, respectively.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                               | 5,331,165   |                              |   | 5,327,040 |   |
| Additional                  paid-in capital                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                               | 7,292,802   |                              |   | 7,254,113 |   |
| Retained                  earnings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                               | 21,530,264  |                              |   | 19,949,100 |   |
| Accumulated                  other comprehensive income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                               | (964,921    | )                                 |   | (1,012,720 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                               | 33,189,310  |                              |   | 31,517,533 |   |
| Cost                  of 14,500 shares of common stock held by the company                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                               | (257,375    | )                                 |   | (257,375 | ) |
| **Total                  stockholders' equity**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                               | 32,931,935  |                              |   | 31,260,158 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                               |        |                              |   |   |   |
| **TOTAL                  LIABILITIES AND STOCKHOLDERS' EQUITY**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | $                                  | 376,971,570 |                              | $      | 389,260,029 |   |

----

Table          of Contents

| **BRITTON&KOONTZ                  CAPITAL CORPORATION AND SUBSIDIARIES** |   |
|------------------------------------------------------------------------------|--------|
| **CONSOLIDATED                  STATEMENTS OF INCOME**                       |   |
|                                                                         |   |   |   |   |   |   |   |   |   |
|                                                                         |   | **Three                  Months Ended** |   | **Nine                  Months Ended** |   |
|                                                                         |   | **September                  30,** |   | **September                  30,** |   |
|                                                                         |   | **2006** |   | **2005** |   | **2006** |   | **2005** |   |
| **INTEREST                  INCOME:**                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                  and fees on loans                                  |   | $ | 4,790,269 |   | $ | 4,181,057 |   | $ | 13,615,831 |   | $ | 11,733,133 |   |
| Interest                  on investment securities:                          |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                    Taxable interest income                              |   |   | 870,895 |   |   | 1,067,892 |   |   | 2,766,923 |   |   | 3,264,967 |   |
|                    Exempt from federal taxes                            |   |   | 409,090 |   |   | 408,217 |   |   | 1,227,191 |   |   | 1,225,395 |   |
| Interest                  on federal funds sold                              |   |   | 3,286 |   |   | 600 |   |   | 24,619 |   |   | 1,368 |   |
| Total                  interest income                                       |   |   | 6,073,540 |   |   | 5,657,766 |   |   | 17,634,564 |   |   | 16,224,863 |   |
|                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **INTEREST                  EXPENSE:**                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                  on deposits                                        |   |   | 1,676,086 |   |   | 1,127,632 |   |   | 4,682,662 |   |   | 2,949,870 |   |
| Interest                  on Federal Home Loan Bank advances                 |   |   | 764,641 |   |   | 939,025 |   |   | 2,178,734 |   |   | 2,590,035 |   |
| Interest                  on federal funds purchased                         |   |   | - |   |   | 74,595 |   |   | - |   |   | 180,855 |   |
| Interest                  on trust preferred securities                      |   |   | 109,953 |   |   | 84,940 |   |   | 309,023 |   |   | 235,751 |   |
| Interest                  on securities sold under repurchase agreements     |   |   | 135,690 |   |   | 44,172 |   |   | 296,571 |   |   | 151,870 |   |
| Total                  interest expense                                      |   |   | 2,686,370 |   |   | 2,270,364 |   |   | 7,466,990 |   |   | 6,108,381 |   |
|                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **NET                  INTEREST INCOME**                                     |   |   | 3,387,170 |   |   | 3,387,402 |   |   | 10,167,574 |   |   | 10,116,482 |   |
|                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Provision                  for loan losses                                   |   |   | 90,000 |   |   | 60,000 |   |   | 210,000 |   |   | 240,000 |   |
|                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **NET                  INTEREST INCOME AFTER PROVISION**                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **FOR                  LOAN LOSSES**                                         |   |   | 3,297,170 |   |   | 3,327,402 |   |   | 9,957,574 |   |   | 9,876,482 |   |
|                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **OTHER                  INCOME:**                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Service                  charges on deposit accounts                         |   |   | 371,905 |   |   | 375,974 |   |   | 1,044,688 |   |   | 1,048,441 |   |
| Income                  from fiduciary activities                            |   |   | 9,492 |   |   | 10,661 |   |   | 29,233 |   |   | 31,133 |   |
| Income                  from investment activities                           |   |   | 52,763 |   |   | 60,254 |   |   | 140,343 |   |   | 137,462 |   |
| Insurance                  premiums and commissions                          |   |   | 50 |   |   | - |   |   | 74 |   |   | - |   |
| Gain/(loss)                  on sale of ORE                                  |   |   | 7,368 |   |   | (3,127 | ) |   | 10,691 |   |   | (5,591 | ) |
| Gain/(loss)                  on sale of mortgage loans                       |   |   | 67,990 |   |   | 95,884 |   |   | 207,859 |   |   | 272,644 |   |
| Gain/(loss)                  on sale of securities                           |   |   | (1,875 | ) |   | - |   |   | (1,875 | ) |   | - |   |
| Gain/(loss)                  on sale of premises & equipment             |   |   | - |   |   | 992 |   |   | - |   |   | 1,142 |   |
| Gain/(loss)                  on sale of other assets                         |   |   | - |   |   | (1,500 | ) |   | - |   |   | (1,500 | ) |
| Other                                                                        |   |   | 106,938 |   |   | 102,835 |   |   | 391,375 |   |   | 352,869 |   |
| Total                  other income                                          |   |   | 614,631 |   |   | 641,973 |   |   | 1,822,388 |   |   | 1,836,600 |   |
|                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |

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Table          of Contents

| **BRITTON                & KOONTZ CAPITAL CORPORATION AND SUBSIDIARIES** |   |
|------------------------------------------------------------------------------|--------|
| **CONSOLIDATED                STATEMENTS OF INCOME (continued)**        |

**                                                                                                                              **

|                                                    |   | **Three                    Months Ended** |      | **Nine                    Months Ended** |   |
|---------------------------------------------------------|--------|-------------------------------------------|-----------|------------------------------------------|--------|
|                                                    |   | **September                    30,**      |      | **September                    30,**     |   |
|                                                    |   | **2006**                                  |      | **2005**                                 |   | **2006** |   | **2005** |   |
| **OTHER                    EXPENSES:**                  |   |                                      |      |                                     |   |   |   |   |   |
| Salaries                                                |   |                                      | 1,268,836 |                                     |   | 1,442,388 |   |   | 3,844,132 |   |   | 4,136,264 |   |
| Employee                    benefits                    |   |                                      | 182,096   |                                     |   | 253,373 |   |   | 574,906 |   |   | 736,739 |   |
| Director                    fees                        |   |                                      | 47,750    |                                     |   | 50,354 |   |   | 148,575 |   |   | 156,707 |   |
| Net                    occupancy expense                |   |                                      | 252,245   |                                     |   | 227,743 |   |   | 720,447 |   |   | 682,127 |   |
| Equipment                    expenses                   |   |                                      | 279,469   |                                     |   | 279,440 |   |   | 803,948 |   |   | 807,246 |   |
| FDIC                    assessment                      |   |                                      | 8,272     |                                     |   | 7,883 |   |   | 24,366 |   |   | 23,564 |   |
| Advertising                                             |   |                                      | 53,736    |                                     |   | 33,064 |   |   | 170,281 |   |   | 137,204 |   |
| Stationery                    and supplies              |   |                                      | 46,940    |                                     |   | 47,652 |   |   | 129,032 |   |   | 133,130 |   |
| Audit                    expense                        |   |                                      | 50,029    |                                     |   | 47,551 |   |   | 139,704 |   |   | 142,755 |   |
| Other                    real estate expense            |   |                                      | 20,277    |                                     |   | 45,776 |   |   | 68,058 |   |   | 68,128 |   |
| Amortization                    of deposit premium      |   |                                      | 26,904    |                                     |   | 26,904 |   |   | 80,712 |   |   | 80,712 |   |
| Other                                                   |   |                                      | 430,208   |                                     |   | 412,311 |   |   | 1,431,228 |   |   | 1,394,596 |   |
| Total                    other expenses                 |   |                                      | 2,666,762 |                                     |   | 2,874,439 |   |   | 8,135,389 |   |   | 8,499,172 |   |
|                                                    |   |                                      |      |                                     |   |   |   |   |   |   |   |   |   |
| **INCOME                    BEFORE INCOME TAX EXPENSE** |   |                                      | 1,245,039 |                                     |   | 1,094,936 |   |   | 3,644,573 |   |   | 3,213,910 |   |
|                                                    |   |                                      |      |                                     |   |   |   |   |   |   |   |   |   |
| Income                    tax expense                   |   |                                      | 321,337   |                                     |   | 266,683 |   |   | 920,022 |   |   | 646,278 |   |
|                                                    |   |                                      |      |                                     |   |   |   |   |   |   |   |   |   |
| **NET                    INCOME**                       |   | $                                         | 923,702   |                                     | $      | 828,253 |   | $ | 2,724,551 |   | $ | 2,567,632 |   |
|                                                    |   |                                      |      |                                     |   |   |   |   |   |   |   |   |   |
| **EARNINGS                    PER SHARE DATA:**         |   |                                      |      |                                     |   |   |   |   |   |   |   |   |   |
|                                                    |   |                                      |      |                                     |   |   |   |   |   |   |   |   |   |
| Basic                    earnings per share             |   | $                                         | 0.44      |                                     | $      | 0.39 |   | $ | 1.29 |   | $ | 1.21 |   |
| Basic                    weighted shares outstanding    |   |                                      | 2,117,966 |                                     |   | 2,116,316 |   |   | 2,117,381 |   |   | 2,116,316 |   |
|                                                    |   |                                      |      |                                     |   |   |   |   |   |   |   |   |   |
| Diluted                    earnings per share           |   | $                                         | 0.44      |                                     | $      | 0.39 |   | $ | 1.28 |   | $ | 1.21 |   |
| Diluted                    weighted shares outstanding  |   |                                      | 2,122,015 |                                     |   | 2,122,912 |   |   | 2,121,943 |   |   | 2,121,368 |   |

----

Table          of Contents

| **BRITTON&KOONTZ                  CAPITAL CORPORATION AND                  SUBSIDIARIES** |   |
|-----------------------------------------------------------------------------------------------|--------|
| **CONSOLIDATED                  STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY**               |   |
| **FOR                  THE NINE MONTHS ENDED SEPTEMBER 30, 2006 AND 2005**                    |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                          |   |   |   |   |   |   |   |   |   | Accumulated |   |   |   |   |   |
|                                                                                          |   |   |   |   |   | Additional |   |   |   | Other |   |   |   | Total |   |
|                                                                                          |   | Common                  Stock |   | Paid-in |   | Retained |   | Comprehensive |   | Treasury |   | Stockholders' |   |
|                                                                                          |   | Shares |   | Amount |   | Capital |   | Earnings |   | Income |   | Stock |   | Equity |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                  at December 31, 2004                                                 |   |   | 2,116,316 |   | $ | 5,327,040 |   | $ | 7,254,113 |   | $ | 18,181,718 |   | $ | 646,272 |   | $ | (257,375 | ) | $ | 31,151,768 |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive                  Income:                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  income                                                                   |   |   |   |   |   |   |   |   |   |   |   | 2,567,632 |   |   |   |   |   |   |   |   | 2,567,632 |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                  comprehensive income (net of tax):                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Net                  change in unrealized gain/(loss)                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                    on securities available for sale, net                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                    of taxes for $568,200                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (955,125 | ) |   |   |   |   | (955,125 | ) |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Other                    Comprehensive gains from                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                    derivatives, net of reclassification                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                    adjustment of $48,821                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (82,067 | ) |   |   |   |   | (82,067 | ) |
| Total                  Comprehensive Income                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 1,530,440 |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash                  Dividend declared $.51 per share                                        |   |   |   |   |   |   |   |   |   |   |   | (1,079,321 | ) |   |   |   |   |   |   |   | (1,079,321 | ) |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                  at September 30, 2005                                                |   |   | 2,116,316 |   | $ | 5,327,040 |   | $ | 7,254,113 |   | $ | 19,670,029 |   | $ | (390,920 | ) | $ | (257,375 | ) | $ | 31,602,887 |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                  at December 31, 2005                                                 |   |   | 2,116,316 |   | $ | 5,327,040 |   | $ | 7,254,113 |   | $ | 19,949,100 |   | $ | (1,012,720 | ) | $ | (257,375 | ) | $ | 31,260,158 |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive                  Income:                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  income                                                                   |   |   |   |   |   |   |   |   |   |   |   | 2,724,551 |   |   | - |   |   |   |   |   | 2,724,551 |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                  comprehensive income (net of tax):                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Net                  change in unrealized gain/(loss)                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                    on securities available for sale, net                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                    of taxes of $28,590                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 48,059 |   |   |   |   |   | 48,059 |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Other                    Comprehensive gains from                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                    derivatives, net of reclassification                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                    adjustment of $155                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (260 | ) |   |   |   |   | (260 | ) |
| Total                  Comprehensive Income                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 2,772,350 |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock                  Options exercised                                                      |   |   | 1,650 |   |   | 4,125 |   |   | 38,689 |   |   |   |   |   |   |   |   |   |   |   | 42,814 |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock                  Dividend declared $.54 per share                                       |   |   |   |   |   |   |   |   |   |   |   | (1,143,386 | ) |   |   |   |   |   |   |   | (1,143,386 | ) |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                  at September 30, 2006                                                |   |   | 2,117,966 |   | $ | 5,331,165 |   | $ | 7,292,802 |   | $ | 21,530,264 |   | $ | (964,921 | ) | $ | (257,375 | ) | $ | 32,931,935 |   |

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| **BRITTON&KOONTZ                  CAPITAL CORPORATION AND SUBSIDIARIES**    |   |
|---------------------------------------------------------------------------------|--------|
| **CONSOLIDATED                  STATEMENTS OF CASH FLOWS**                      |   |
| **PERIODS                  ENDED SEPTEMBER 30,**                                |   |
|                                                                            |   |   |   |   |   |
|                                                                            |   | **2006** |   | **2005** |   |
| **CASH                  FLOWS FROM OPERATING ACTIVITIES**                       |   |   |   |   |   |
| Net                  income                                                     |   | $ | 2,724,551 |   | $ | 2,567,632 |   |
| Adjustments                  to reconcile net income to net cash                |   |   |   |   |   |   |   |
|                      provided by (used in) operating activities: |   |   |   |   |   |   |   |
| Deferred                  income taxes                                          |   |   | (181,080 | ) |   | (156,227 | ) |
| Provision                  for loan losses                                      |   |   | 210,000 |   |   | 240,000 |   |
| Provision                  for depreciation                                     |   |   | 591,234 |   |   | 597,461 |   |
| Stock                  dividends received                                       |   |   | (142,900 | ) |   | (131,200 | ) |
| (Gain)/loss                  on sale of other real estate                       |   |   | (10,691 | ) |   | 5,591 |   |
| (Gain)/loss                  on sale of other repossessed assets                |   |   | - |   |   | 1,500 |   |
| (Gain)/loss                  on sale of mortgage loans                          |   |   | (207,859 | ) |   | (272,644 | ) |
| (Gain)/loss                  on sale of investment securities                   |   |   | 1,875 |   |   | - |   |
| (Gain)/loss                  on sale of premises and equipment                  |   |   | - |   |   | (1,142 | ) |
| Net                  amortization (accretion) of securities                     |   |   | 115,976 |   |   | 251,751 |   |
| Amortization                  of deposit premium                                |   |   | 80,712 |   |   | 80,712 |   |
| Writedown                  of other real estate                                 |   |   | 22,178 |   |   | 34,255 |   |
| Writedown                  of other repossessed assets                          |   |   | - |   |   | 5,000 |   |
| Net                  change in:                                                 |   |   |   |   |   |   |   |
|                      Loans held for sale                         |   |   | 171,200 |   |   | 513,038 |   |
|                      Accrued interest receivable                 |   |   | (209,013 | ) |   | (228,803 | ) |
|                      Cash surrender value                        |   |   | (28,167 | ) |   | 14,966 |   |
|                      Other assets                                     |   |   | (190,692 | ) |   | (175,217 | ) |
|                      Accrued interest payable                         |   |   | 468,414 |   |   | 147,446 |   |
|                      Accrued taxes and other liabilities              |   |   | 144,170 |   |   | 554,574 |   |
|                                                                            |   |   |   |   |   |   |   |
| Net                  cash provided by (used in) operating activities            |   |   | 3,559,908 |   |   | 4,048,693 |   |
|                                                                            |   |   |   |   |   |   |   |
| **CASH                  FLOWS FROM INVESTING ACTIVITIES**                       |   |   |   |   |   |   |   |
| (Increase)/decrease                  in federal funds sold                      |   |   | 127,360 |   |   | 109,031 |   |
| Proceeds                  from sales, maturities and paydowns                   |   |   |   |   |   |   |   |
| of                  investment securities                                       |   |   | 17,083,379 |   |   | 19,994,952 |   |
| Redemption/(Purchase)                  of FHLB stock                            |   |   | 1,044,000 |   |   | (371,500 | ) |
| Purchases                  of investment securities                             |   |   | (5,596,886 | ) |   | (14,029,560 | ) |
| (Increase)/decrease                  in loans                                   |   |   | (2,310,396 | ) |   | (24,130,276 | ) |
| Proceeds                  from sale and transfers of other real estate          |   |   | 152,713 |   |   | 397,032 |   |
| Proceeds                  from sale and transfers of other repossessed assets   |   |   | 4,500 |   |   | 30,565 |   |
| Proceeds                  from sale of premises and equipment                   |   |   | - |   |   | 1,142 |   |
| Purchase                  of premises and equipment                             |   |   | (358,606 | ) |   | (525,288 | ) |
|                                                                            |   |   |   |   |   |   |   |
| Net                  cash provided by (used in) investing activities            |   |   | 10,146,064 |   |   | (18,523,902 | ) |
|                                                                            |   |   |   |   |   |   |   |
| **CASH                  FLOWS FROM FINANCING ACTIVITIES**                       |   |   |   |   |   |   |   |
| Increase                  /(decrease) in customer deposits                      |   |   | (1,169,515 | ) |   | 18,469,612 |   |
| Increase                  /(decrease) in brokered deposits                      |   |   | 600,670 |   |   | (1,981,000 | ) |
| Increase                  /(decrease) in securities sold under                  |   |   |   |   |   |   |   |
| repurchase                  agreements                                          |   |   | 1,355,271 |   |   | (1,830,424 | ) |
| Increase                  /(decrease) in federal funds purchased                |   |   | - |   |   | (2,985,000 | ) |
| Increase                  /(decrease) in FHLB advances                          |   |   | (15,252,485 | ) |   | 8,174,688 |   |
| Increase                  /(decrease) in advances from borrowers                |   |   |   |   |   |   |   |
| for                  taxes and insurance                                        |   |   | (106,762 | ) |   | (8,563 | ) |
| Common                  stock issued                                            |   |   | 42,814 |   |   | - |   |
| Cash                  dividends paid                                            |   |   | (1,143,385 | ) |   | (1,079,321 | ) |
|                                                                            |   |   |   |   |   |   |   |
| Net                  cash provided by (used in) financing activities            |   |   | (15,673,392 | ) |   | 18,759,992 |   |
|                                                                            |   |   |   |   |   |   |   |
| **NET                  INCREASE/(DECREASE) IN CASH AND DUE FROM BANKS**         |   |   | (1,967,420 | ) |   | 4,284,783 |   |
|                                                                            |   |   |   |   |   |   |   |
| **CASH                  AND DUE FROM BANKS AT BEGINNING OF PERIOD**             |   |   | 9,825,459 |   |   | 6,576,825 |   |
|                                                                            |   |   |   |   |   |   |   |
| **CASH                  AND DUE FROM BANKS AT END OF PERIOD**                   |   | $ | 7,858,039 |   | $ | 10,861,608 |   |

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| **BRITTON                & KOONTZ CAPITAL CORPORATION AND SUBSIDIARIES** |   |
|------------------------------------------------------------------------------|--------|
| **CONSOLIDATED                STATEMENTS OF CASH FLOWS**                     |   |
| **PERIODS                ENDED SEPTEMBER 30,**                               |

| **SUPPLEMENTAL                  DISCLOSURES OF CASH FLOW INFORMATION**              |   | **2006** |      | **2005** |   |
|-------------------------------------------------------------------------------------|--------|----------|-----------|----------|--------|
| Cash                  paid during the year for interest                             |   | $        | 6,998,576 |     | $      | 5,960,935 |   |
| Cash                  paid during the year for income taxes                         |   | $        | 1,051,298 |     | $      | 550,676 |   |
|                                                                                |   |     |      |     |   |   |   |
| **SCHEDULE                  OF NONCASH INVESTING AND FINANCING ACTIVITIES**         |   |     |      |     |   |   |   |
| Transfers                  from loans foreclosed to other real estate               |   | $        | 137,754   |     | $      | 401,121 |   |
|                                                                                |   |     |      |     |   |   |   |
| Change                  in unrealized gains (losses)                                |   |     |      |     |   |   |   |
| on                    securities available for sale                                 |   | $        | 76,649    |     | $      | (1,523,325 | ) |
|                                                                                |   |     |      |     |   |   |   |
| Change                  in the deferred tax effect in unrealized                    |   |     |      |     |   |   |   |
|                      gains (losses) on securities available for sale |   | $        | 28,590    |     | $      | (568,200 | ) |
|                                                                                |   |     |      |     |   |   |   |
| Change                  in unrealized gains (losses) on derivative                  |   | $        | (415      | )        | $      | (130,888 | ) |
|                                                                                |   |     |      |     |   |   |   |
| Change                  in the deferred tax effect in                               |   |     |      |     |   |   |   |
|                       unrealized gains (losses) on derivative   |   | $        | (155      | )        | $      | (48,821 | ) |

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**BRITTON&KOONTZ      CAPITAL CORPORATION AND      SUBSIDIARIES**

**NOTES      TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**SEPTEMBER      30, 2006 AND DECEMBER 31, 2005**

**Note      A. Basis of Presentation**

**Note      B. Interest Rate Risk Management**

**Note      C. Loans Held-for-Sale**

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**Note      D. Junior Subordinated Debentures**

**Note      E. Loan Commitments**

**Note      F. Earnings per Share**

|                                                       |   | For                the three months endedSeptember                30, |      |
|------------------------------------------------------------|--------|-----------------------------------------------------------------------|-----------|
|                                                       |   | 2006                                                                  |      | 2005 |   |
| Basic                weighted average shares outstanding   |   |                                                                  | 2,117,966 |   |   | 2,116,316 |   |
| Dilutive                effect of granted options          |   |                                                                  | 4,049     |   |   | 6,596 |   |
|                                                       |   |                                                                  |      |   |   |   |   |
| Diluted                weighted average shares outstanding |   |                                                                  | 2,122,015 |   |   | 2,122,912 |   |
| Net                income                                  |   | $                                                                     | 923,702   |   | $ | 828,253 |   |
| Net                income per share-basic                  |   | $                                                                     | 0.44      |   | $ | 0.39 |   |
| Net                income per share-diluted                |   | $                                                                     | 0.44      |   | $ | 0.39 |   |

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|                                                       |   | For                the nine months endedSeptember                30, |      |
|------------------------------------------------------------|--------|----------------------------------------------------------------------|-----------|
|                                                       |   | 2006                                                                 |      | 2005 |   |
| Basic                weighted average shares outstanding   |   |                                                                 | 2,117,381 |   |   | 2,116,316 |   |
| Dilutive                effect of granted options          |   |                                                                 | 4,562     |   |   | 5,052 |   |
|                                                       |   |                                                                 |      |   |   |   |   |
| Diluted                weighted average shares outstanding |   |                                                                 | 2,121,943 |   |   | 2,121,368 |   |
| Net                income                                  |   | $                                                                    | 2,724,551 |   | $ | 2,567,632 |   |
| Net                income per share-basic                  |   | $                                                                    | 1.29      |   | $ | 1.21 |   |
| Net                income per share-diluted                |   | $                                                                    | 1.28      |   | $ | 1.21 |   |

**Item      2. Management’s Discussion and Analysis of Financial Condition      and Results of Operations**

**SUMMARY**

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**Financial      Condition**

**Assets**

** **
** **

**Investment      Securities**

**TABLE      1: COMPOSITION OF INVESTMENT PORTFOLIO **
**(**
*Amortized      Cost*
**)**

|                                      |   | 09/30/06 |        | 12/31/05 |   |
|-------------------------------------------|--------|----------|-------------|----------|--------|
| Mortgage-Backed                Securities |   | $        | 64,789,738  |     | $      | 76,496,343 |   |
| Agencies                Obligations       |   |     | 6,496,247   |     |   | 6,495,545 |   |
| Obligations                of State and   |   |     |        |     |   |   |   |
| Political                Subdivisions     |   |     | 35,006,323  |     |   | 34,904,765 |   |
| Total                                     |   | $        | 106,292,308 |     | $      | 117,896,653 |   |

**Loans      held to maturity**

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**TABLE      2: COMPOSITION OF LOAN PORTFOLIO **
***(including      loans held for sale)***

|                                                    |   | 09/30/06 |        | 12/31/05 |   |
|---------------------------------------------------------|--------|----------|-------------|----------|--------|
| Commercial,                financial & agricultural |   | $        | 31,475,000  |     | $      | 32,868,000 |   |
| Real                estate-construction                 |   |     | 40,104,000  |     |   | 30,069,000 |   |
| Real                estate-1-4 family residential       |   |     | 78,308,000  |     |   | 94,126,000 |   |
| Real                estate-other                        |   |     | 85,754,000  |     |   | 75,237,000 |   |
| Installment                                             |   |     | 11,344,000  |     |   | 12,478,000 |   |
| Other                                                   |   |     | 151,000     |     |   | 306,000 |   |
| Total                loans                              |   | $        | 247,136,000 |     | $      | 245,084,000 |   |

**TABLE      2a: COMPOSITION OF LOAN PORTFOLIO BY MARKET **
***(including      loans held for sale)***

|                                              |   | 09/30/06 |        | 12/31/05 |   |
|---------------------------------------------------|--------|----------|-------------|----------|--------|
| Natchez,                Mississippi               |   | $        | 92,221,000  |     | $      | 86,210,000 |   |
| Baton                Rouge, Louisiana             |   |     | 70,662,000  |     |   | 58,876,000 |   |
| Vicksburg,                Mississippi             |   |     | 49,289,000  |     |   | 50,873,000 |   |
| Unallocated                1-4 Family Residential |   |     | 34,964,000  |     |   | 49,125,000 |   |
| Total                loans                        |   | $        | 247,136,000 |     | $      | 245,084,000 |   |

**        Bank      Premises**

**Asset      Quality**

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**TABLE      3: BREAKDOWN OF NONPERFORMING ASSETS**

|                                                                                                                                     |   | 09/30/06                              |   | 12/31/05 |   |
|------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|--------|----------|--------|
|                                                                                                                                     |   | (dollars                in thousands) |   |
| Non-accrual                loans by type:                                                                                                |   |                                  |   |     |   |   |   |
| Real                estate                                                                                                               |   | $                                     | 437    |     | $      | 413 |   |
| Installment                                                                                                                              |   |                                  | 62     |     |   | 72 |   |
| Commercial                and all other loans                                                                                            |   |                                  | 765    |     |   | 574 |   |
| Total                non-accrual loans                                                                                                   |   |                                  | 1,264  |     |   | 1,059 |   |
| Loans                past due 90 days or more                                                                                            |   |                                  | 934    |     |   | 201 |   |
| Total                nonperforming loans** **                                                                                       |   |                                  | 2,198  |     |   | 1,260 |   |
| Other                real estate owned (net)                                                                                             |   |                                  | 1,366  |     |   | 1,471 |   |
| Total                nonperforming assets                                                                                                |   | $                                     | 3,564  |     | $      | 2,731 |   |
| Nonperforming                loans as a percent of loans, net of unearned interest and loans held                for                sale |   |                                  | .89    | %        |   | .51 | % |

**Allowance      for Possible Loan Losses**

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**Provision      for Possible Loan Losses**

**TABLE      4: ACTIVITY OF ALLOWANCE FOR POSSIBLE LOAN LOSSES**

|                                                                                                                                                            |   | 09/30/06                              |   | 09/30/05 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|--------|----------|--------|
|                                                                                                                                                            |   | (dollars                in thousands) |   |
| Balance                at beginning of period                                                                                                                   |   | $                                     | 2,378  |     | $      | 2,237 |   |
| Charge-offs:                                                                                                                                                    |   |                                  |   |     |   |   |   |
| Real                Estate                                                                                                                                      |   |                                  | (8     | )        |   | (50 | ) |
| Commercial                                                                                                                                                      |   |                                  | (242   | )        |   | (50 | ) |
| Installment                and other                                                                                                                            |   |                                  | (43    | )        |   | (39 | ) |
| Recoveries:                                                                                                                                                     |   |                                  |   |     |   |   |   |
| Real                Estate                                                                                                                                      |   |                                  | 26     |     |   | 26 |   |
| Commercial                                                                                                                                                      |   |                                  | 10     |     |   | 10 |   |
| Installment                and other                                                                                                                            |   |                                  | 26     |     |   | 29 |   |
| Net                (charge-offs)/recoveries                                                                                                                     |   |                                  | (231   | )        |   | (74 | ) |
| Provision                charged to operations                                                                                                                  |   |                                  | 210    |     |   | 240 |   |
| Balance                at end of period                                                                                                                         |   | $                                     | 2,357  |     | $      | 2,403 |   |
| Allowance                for loan losses as a percent of loans,                     net of unearned interest & loans held for sale |   |                                  | .95    | %        |   | .99 | % |
| Net                charge-offs as a percent of average loans                                                                                                    |   |                                  | .10    | %        |   | .03 | % |

**Potential      Problem Loans**

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Table          of Contents

**Deposits      **

**TABLE      5: COMPOSITION OF DEPOSITS**

|                                         |   | 09/30/06 |        | 12/31/05 |   |
|----------------------------------------------|--------|----------|-------------|----------|--------|
| Non-Interest                Bearing          |   | $        | 52,439,506  |     | $      | 51,466,230 |   |
| NOW                Accounts                  |   |     | 24,078,321  |     |   | 23,016,487 |   |
| Money                Market Deposit Accounts |   |     | 39,007,042  |     |   | 36,516,395 |   |
| Savings                Accounts              |   |     | 18,658,927  |     |   | 23,032,910 |   |
| Certificates                of Deposit       |   |     | 122,624,269 |     |   | 123,344,888 |   |
| Total                Deposits                |   | $        | 256,808,065 |     | $      | 257,376,910 |   |

**Borrowings      **

**Capital**

** **

**Off-Balance      Sheet Arrangements**

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**Results      of Operations**

**Net      Income**

**Net      Interest Income and Net Interest Margin**

----

Table          of Contents

**Non-Interest      Income **

**Non-Interest      Expense**

**Income      Taxes**

**Liquidity      and Capital Resources**

----

Table          of Contents

** **

**Contractual      Obligations**

**DISCLOSURE      REGARDING FORWARD-LOOKING STATEMENTS**

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Table          of Contents

**Item3.**
**Quantitative      and Qualitative Disclosures About Market Risk**

**Item      4.**
**Controls      and Procedures**

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Table          of Contents

**PARTII.      OTHER INFORMATION**

**Item      1A.**
**Risk      Factors**

**Item      2.**
**Unregistered      Sales of Equity Securities and Use of Proceeds**

| **Item                6.** | **Exhibits** |
|----------------------------|--------------|

| Exhibit |   | Description                of Exhibit                                                                                                                                                                                                                                                                                                                                                                                     |
|---------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 3.1     | *      | Restated                Articles of Incorporation of Britton & Koontz Capital Corporation, as                amended, incorporated by reference to Exhibit 3.1 to Registrant’s                Quarterly Report on Form 10-Q filed with the Securities and Exchange                Commission on August 4, 2006.                                                                                                 |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 3.2     |   | By-Laws                of Britton & Koontz Capital Corporation, as amended and                restated.                                                                                                                                                                                                                                                                                                          |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 4.1     | *      | Shareholder                Rights Agreement dated June 1, 1996, between Britton & Koontz Capital                Corporation and Britton & Koontz First National Bank, as Rights Agent,                incorporated by reference to Exhibit 4.3 to Registrant’s Registration                Statement on Form S-8, Registration No. 333-20631, filed with the                Commission on January 29, 1997. |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 4.2     | *      | Amendment                No. 1 to Rights Agreement, dated as of August 15, 2006, by and between                Britton & Koontz Capital Corporation and Britton & Koontz Bank,                N.A., incorporated by reference to Exhibit 4.2 to Registrant’s Current                Report on Form 8-K filed with the Commission on August 17,                2006.                                         |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 31.1    |   | Certifications                of the Chief Executive Officer, as required pursuant to Section 302                of the                Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                                                         |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 31.2    |   | Certifications                of the Chief Financial Officer, as required pursuant to Section 302                of the                Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                                                         |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 32.1    |   | Certifications                of the Chief Executive Officer, as required pursuant to Section 906                of the                Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                                                         |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 32.2    |   | Certifications                of the Chief Financial Officer, as required pursuant to Section 906                of the                Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                                                         |

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Table          of Contents

**SIGNATURES**

| Date:  | November                14, 2006 | /s/              W. Page Ogden    |
|--------|----------------------------------|----------------------------------------|
|   |                             | W.                Page Ogden           |
|   |                             | Chief                Executive Officer |

| Date:  | November                14, 2006 | /s/              William M. Salters  |
|--------|----------------------------------|-------------------------------------------|
|   |                             | William                M. Salters         |
|   |                             | Chief                Financial Officer    |

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Table          of Contents

**EXHIBIT      INDEX**

| Exhibit | Description                of Exhibit                                                                                                                             |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                              |
| 3.2     | By-Laws                of Britton & Koontz Capital Corporation, as                amended and restated.                                                       |
|    |                                                                                                                                                              |
| 31.1    | Certifications                of the Chief Executive Officer, as                required pursuant to Section 302 of the Sarbanes-Oxley Act of                2002 |
|    |                                                                                                                                                              |
| 31.2    | Certifications                of the Chief Financial Officer, as                required pursuant to Section 302 of the Sarbanes-Oxley Act of                2002 |
|    |                                                                                                                                                              |
| 32.1    | Certifications                of the Chief Executive Officer, as                required pursuant to Section 906 of the Sarbanes-Oxley Act of                2002 |
|    |                                                                                                                                                              |
| 32.2    | Certifications                of the Chief Financial Officer, as                required pursuant to Section 906 of the Sarbanes-Oxley Act of                2002 |